Crawford avalanche. (Grayling, Mich.) 1879-19??, 1887-12-15
PRESIDENTS MESSAGE.
The Entire Document De-
voted to Finance and
Taxation.
Congress Urgently Called Upon to
Reduce the Treasury
Surplus.
Our Present Tariff Laws Character
lied as Vicious, InequitahIs
and IIIosuI,
The Repeal of the Internal Revenue
Tax on Whisky and To-
baccO Opposed.

UoOOO OppOoCus
To the Congress- OF the Unite States:
You aro confronted at the threshold of yoIs
legislative duties with a condition Of the ma
tional tnances which imperatively demands
immediate and careful consideration.
, Inc amount OF money annually exacted,
I'M ough the operation OF present laws, from the
industries and necessities Of the people, largely
exceeds the sum necessary to meet the exi.
gencies OF the Government
When we consider that the theory OF our In
situations guarantees TO every ctiZan the full
enjoyment of all the fruits of his industry and
enterprise, with only such deduction as may be
MS share toward the careful and economical
this is
TNDEFENsIBLE ExToRTIoN,
and culpable betrayal Of American fairness
ana justice. This wrong, inflicted upon ia )se
who bear the burden OF national taxation like
other wrongs. multiplies brood of evil conse-
quences The public treasury, which should
trbute to It's esmatS obsseass 81 ee' 5sSs SsSgI
ture, becomes hoarding-place for money
needlessly Withdrawn from trade and the poo
pies use, thus cripplinR our national energies,
suspendinB our countrys development pre-
venting investment in productive enterI rises,
viting schemes of public plunder This
condition OF our Treasury is not altogether
now and it has more than once of late been
submitted to the peoples representatives in the
Congress, who alone can apply the remedy. And
yet the situation still continues, with aggra-
waited incidents. more than ever presaging finan-
cial convulsions and widespread disaster.
IL will not do to neglect this situation because
its dangers are not now palpably imminent and
apparent They exist mono tho less certainly
ana await the unforeseen, unexpected occasion
whon suddenly they will be precipitated upon
u.s.
On tho 9Oth day of June 1885,, the excess OF
revenues over public expenditures, after COIN
plying with tho annu i requirement of the
sinking fund act, was SI7,SJ9, ,73j "a; during the
year ended June b 1885, such excess amounted
to S49, 405, $500, and during the year ended
June 81, 1887, il reached the sum OF S5j.5H-
Si95i
The annual contributions to tho sinking fund
during the three W ars above srecifod, amount
ing in the agl regate to $3.50 6,32 L0I, and de-
Quoted from the 81 rolus- ns statad--wara nnads
per cent. bonds of tn Government During the
six months prior to June 81, 1887, the
SURPLUS REVENUE
had grown so large by repeated accumulatons,
and it was feared he withdrawal OF this great
sum of money needed by the people would
so affect the business Of the country that the
sum OF 1854 100 OF such surplus was ep; S
interest OF the three per cent, bonds still
outstanding, and which were then pay
able at the optlon. OF tne t"1 1SSSrnMehs fseirs
among the people still needing relief, immedi.
ately after the 30th day of Juno, 1881, the re-
mainder OF the per cent bonds then outstand-
ing, amounting with principal and interest, to
the sum of $lS,S77, ,50J, were called in and apA
piled to the sinking.fund contribution for the
current fiscal year Notwithst lnding these OPP
erations Of the Treasury Department. ropresen-
t6tions of distress In business circles not only
continued but increased, and absolute peru
seemed at hand In those circumstances the
contribution to the sinking.fund for the current
fiscal year was at once completed p py
the purchase Of Government bonds
not yet due bearing AZ per cent interest. the
premium paid thereon averaging about "a per
cent. for the former and per cent. for the lat
ter In addition to this, the interest accruins
during the present yenr upon the outstanding
bonded indebtedness OF the Government was to
aeps s5tsnt q gg RRsSRbY "a q
somewhat increase their deposits.
While the eXped.ents thus employed to re-
lease TO the people the monoy lying idle in the
treasury served to avert immediate danger, our
surplus revenues have continued TO accumulate,
the excess for the present year amount ng on
the trst day OF December to 1912 e,7Ol ~, nId
estimated TO reach the sum OF Sll3.00 ,00J OH the
3Oth of June next. at which date IL Is expected
that this sum, added to prior accumulatons,
will swell the surplus In the Treasury to Sl4',-
000, 900.
There seems to be no assurance that with
such n withdrawal from use Of the peoples cir
culating medium our business may not in the
near future be subjected to the samo distress
which was quite lately produced from the same
cause. And while the functions OF our Nation :
al Treasury should be few and simple and
while its best condition would be reached,
believe, by its entire disconnection with pri-
vate business interests, yet when, by perver-
sion OF its purposes, IL idly holds money useless
ly subtracted from the channels OF trade. there
seems to be reason for tho claim that some
legitimate means should he devised by the
Government to restore in an emergency, with
out waste or extravaganza, such money to its
place among the people.
II such an emergency arises there now exists
no clear and undoubted executive
POWER OF RELIEF.
Heretofore the redemption Of per cent bonds,
which were payable at the option of the Gov
ernment. has afforded a means for the disburse-
tnffl flaa afaf hrrf klfca
bonds have all been retired. and there arc nc
bonds outstanding the payment of which we
have the right TO insist upon. The contribution
to the sinking fund which furnishes the occa-
sion for expenditure in the purchase Of bois 9
has been already made for the current year, SC
that there is no outlet in that direction.
In tho present state Of legislation the only
pretense OF any existing executive power to
restore at this time any part Of our surplus 10
the people by its expenditure consists in the
supposition that the Secretary of the Treasury
may enter the market and purchase the bonds
of the Government not yet due at a rate Of pre-
MUM to be agreed upon.
The only provision OF law from which such a
power could be derived Is found in an appropr
alton bill passed q number OF years ago; and II
is subject to the suspicion that it was intended
as temporary, and limited i'm its application in
stead of conferring a continuing discretion and
authority. No condition ought to exist which
would justify the grant of power to single
official, upon his Judgment of its necessity tC
withhold from or release to the busnes'
OF the people, in an unusual manner
money held in the treasury, ana thui
affect at his will, the financial situation OF the
country and II IL Is deemed wise to lodge In
the Secretary of the Treasury the authority IN
the present juncture TO purchase bonds, II
should be plainly vested, and provided, as fal
as possible, with such checks and Limitations
as will define this officials right and discretion
and at the same time relieve him from undu,
responsibility.
In considering the question OF
PURCHASING BONDS
as a means OF restoring to circulation the sur
plus money accumulating in the Treasury, i
should be borne I'm mind that premiums must
of course, be paid upon such purchase, tina
there may be q large part of these bonds helC
as investments which cannot be purchased a
any price. and that combinations among hold
ers who are willing to sell may unreasonabll
enhance the cost OF such bonds 10 the Govern
ment
Il has been suggested that the present bondes
debt might be refunded at a less rate Of interest
and the difference between the old ana nev
security paid ina cash, thus finding use for th'
surplus in the Treasury. Tho success Of thi
plan, it 10 apparent, must depend upon tho wolf
tion OF the holders Of the present bonds; and !
IL not entirely certain that tho inducemen
which must be offered them would result Il